This module allows you to analyze existing cross correlation between Poloniex Bitcoin USD and Coinroom Bitcoin USD. You can compare the effects of market volatilities on Poloniex Bitcoin and Coinroom Bitcoin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Poloniex Bitcoin with a short position of Coinroom Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Poloniex Bitcoin and Coinroom Bitcoin.

Poloniex

Coinroom

Bitcoin on Coinroom in USD

16,302

803.9

5.19%

Market Cap: 958.6 M

Performance (%)

Timeline

Pair Volatility

Assuming 30 trading days horizon, Poloniex Bitcoin USD is expected to generate 0.88 times more return on investment than Coinroom Bitcoin. However, Poloniex Bitcoin USD is 1.14 times less risky than Coinroom Bitcoin. It trades about 0.47 of its potential returns per unit of risk. Coinroom Bitcoin USD is currently generating about 0.41 per unit of risk. If you would invest 654,900 in Poloniex Bitcoin USD on November 13, 2017 and sell it today you would earn a total of 901,003 from holding Poloniex Bitcoin USD or generate 137.58% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Poloniex Bitcoin and Coinroom Bitcoin

0.97

Parameters

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Poloniex Bitcoin USD and Coinroom Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinroom Bitcoin USD and Poloniex Bitcoin is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Poloniex Bitcoin USD are associated (or correlated) with Coinroom Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinroom Bitcoin USD has no effect on the direction of Poloniex Bitcoin i.e. Poloniex Bitcoin and Coinroom Bitcoin go up and down completely randomly.